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<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style="font-weight: bold">Scotia calls in clients to renegotiate loans</span>
Wednesday, January 07, 2009
Scotiabank is reporting a positive response after it contacted customers asking them if they would like to renegotiate their loans after it noticed an increased rate of default.
The bank began calling customers before Christmas and this week began advertising the facility, Wayne Powell, executive vice president for branch banking told the Business Observer.
"We realised that some people are even afraid when they know they are going to have issues and so we decided to call a lot of our good customers even though they aren't in default to offer to reschedule their payments so that they don't go into default and we also have a programme for those who are already in default," said Powell.
He said that the programme was not unprecedented but that it was the first time Scotiabank had taken the step of publicly advertising such an offer. Customers faced with a one-year payment schedule can have this extended by as long as three years, he said.
Unsurprisingly the gesture has gone down well with customers who have begun arranging appointments with the bank.
"They can't believe what we are doing!" he said.
He said that besides the financial crisis other factors such as prior job cuts and the fall-out from the collapse of alternative investment schemes could also have added to the increasing rate of default.</div></div>
Wednesday, January 07, 2009
Scotiabank is reporting a positive response after it contacted customers asking them if they would like to renegotiate their loans after it noticed an increased rate of default.
The bank began calling customers before Christmas and this week began advertising the facility, Wayne Powell, executive vice president for branch banking told the Business Observer.
"We realised that some people are even afraid when they know they are going to have issues and so we decided to call a lot of our good customers even though they aren't in default to offer to reschedule their payments so that they don't go into default and we also have a programme for those who are already in default," said Powell.
He said that the programme was not unprecedented but that it was the first time Scotiabank had taken the step of publicly advertising such an offer. Customers faced with a one-year payment schedule can have this extended by as long as three years, he said.
Unsurprisingly the gesture has gone down well with customers who have begun arranging appointments with the bank.
"They can't believe what we are doing!" he said.
He said that besides the financial crisis other factors such as prior job cuts and the fall-out from the collapse of alternative investment schemes could also have added to the increasing rate of default.</div></div>